Wednesday, March 14, 2007 5:38:57 AM
INDU envelope/NYSE breadth system major buy signal setup.....
the creator of this system describes this signal (aside from occurring at bear market bottoms), as "this may take place at interim stages in an on-going bull market or it may reverse a steep INDU sell-off. it occurs when the INDU tags it's lower band and the NYSE 21 day mv avg of breadth is positive or nearly so"
that's what we have today. my only caveat is i think it's prudent to wait a day or more to make sure the breadth indicator does not fail and make a new swing low. in the notes i have the author indicates 39 signals were given over a 20 yr period from 1969 to 1989, 80% were profitable with an average gain of 10%, the 20 losing signals had small losses on average. add in that we are in the time window for a nominal 20 wk cycle low
if the signal deteriorates i'll post it.
the current buy and the previous july 06 buy are noted on the chart below...........
the creator of this system describes this signal (aside from occurring at bear market bottoms), as "this may take place at interim stages in an on-going bull market or it may reverse a steep INDU sell-off. it occurs when the INDU tags it's lower band and the NYSE 21 day mv avg of breadth is positive or nearly so"
that's what we have today. my only caveat is i think it's prudent to wait a day or more to make sure the breadth indicator does not fail and make a new swing low. in the notes i have the author indicates 39 signals were given over a 20 yr period from 1969 to 1989, 80% were profitable with an average gain of 10%, the 20 losing signals had small losses on average. add in that we are in the time window for a nominal 20 wk cycle low
if the signal deteriorates i'll post it.
the current buy and the previous july 06 buy are noted on the chart below...........
aire
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